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Economics (AS & A Level) · Oct / Nov 2021 · Paper 31 · Question 9

9708Growth and survival of firms

A multinational firm seeks to minimise costs and maximise profits. What would least assist the multinational to achieve these objectives?

  1. Aachieving a near monopoly status to control outputs and prices
  2. Blocating the firm's home base in a country with a low level of corporation tax
  3. Coperating as a member of a cartel with production quotas
  4. Downing subsidiary firms in different countries to achieve economies of scale

As printed in the paper

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Correct answer: C. operating as a member of a cartel with production quotas

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